Disclosure of Divergence in the Asset Classification and Provisioning by Banks

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Oct 01, 2017

Disclosure of Divergence in the Asset Classification and Provisioning by Banks

Pursuant to the RBI notification dated April 18, 2017 requiring certain disclosures by banks in cases of divergence in asset classification and provisioning, SEBI, by its circular dated July 18, 2017 mandated banks with listed specified securities (equity shares and convertible securities) to disclose divergences in asset classification and provisioning to the stock exchanges in the prescribed format where:

i. the additional provisioning requirements assessed by the RBI exceed 15% of the published net profits after tax for the reference period; and/or

ii. the additional gross non performing assets identified by the RBI exceed 15% of the published incremental gross non performing assets for the reference period.

Such disclosures are required to be made along with the annual financial results filed immediately following communication of such divergence by the RBI to the concerned bank, as an annexure to the disclosures to the annual financial results filed with the stock exchanges in accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

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